So what is a good NPS score?
“What is a healthy Net Promoter Score?” you may ask yourself, well, you are not alone. This is an important question because if you don’t know how much you should have how will you be able to gauge your results and know what you’re worth.
The importance of the Net Promoter Score is that it gives you insights into your customer loyalty spectrum. As you move up the scoring scale, from 0 to 10, customers will churn at lower rates, will spend more and will gradually promote and speak more fondly of your business.
A good NPS score is much more than just a mere number. It’s a way to measure up against your competitors, an indicator of your current success, and it’s a way to gain insight into what your business can do better and where your business is headed.
General belief is that given the range of scores on the NPS spectrum (-100 to +100) a positive score or a score above 0 can be regarded as good, +50 is regarded as excellent and +70 is considered as ‘world class’. According to global NPS standards, a positive score would be regarded as good NPS since most of your respondents are loyal/promotive.
“There does not exist an exact number for a good NPS, because it varies from industry to industry and from business to business. Generally, any score above 0 can be considered “good”. A score below 0 is a serious indicator that the company needs to take measures to improve its customer satisfaction level.” – Grigore Raileanu, Founder and CEO of Retently
So, the short answer would be: ‘a positive score is a good NPS score’. This means your company is generating a lot of positive word-of-mouth from their referrals. But the interpretation of a good NPS score is largely dependent on which industry benchmark it goes up against.
“While I’ve stated many times that your score, by itself, is largely meaningless, I do recognize that people enjoy using it to measure their overall progress and to compare their performance in a competitive landscape.” – Chad Keck, CEO and cofounder of Promoter.io
Here are the scores from 5 brands I’m sure you’ve heard of that I found on NPS benchmarks.
- Tesla + 97
- Apple +89
- Microsoft +45
- Nike +32
- Coca Cola +20
As you can see above, NPS scores of almost 100 are not entirely impossible. Although NPS is no doubt a powerful metric. It is definitely not a guaranteed measure for success and experts are well aware of this.
“I love NPS but I love one number even better, and that is: “how often does the customer come back?”. Behavior is repeat business, intent is recommendation. NPS is great but still only measures a feeling and not an action.” – Shep Hyken, customer service expert, author, speaker, founder of thecustomerfocus.com and hyken.com
“NPS shouldn’t be the be all-end all answer because a good NPS may be a false positive – for example, even though someone may answer the NPS question with a 9 or 10, does that mean they actually recommend? That’s why asking the follow-up question is important. And, why backing up NPS ratings with other metrics is necessary.” – Sue Duris, Founder/Director of Marketing and Customer Experience of M4 Communications, Inc.